Orion Health

[Louloubell]

At first glance today's result seems encouraging and confirming.

[kiora]

https://nzx.com/companies/OHE/announcements/282801
Didn't quite hit my forecasts.Due to change to SAAS model?Increase 17/more in 2018
In my view need more runs on the board in USA where they appear to have put a lot of effort in.Now decreasing staff numbers to improve profitability
Europe looking good 59% revenue growth,increasing recurring revenue
Where are they on uptake in NZ & Australasia?When I have asked Health Professionals here about Orion Health they seem to never have heard of it???
Positive 30%TO into R & D.Developing large MOAT?
Revenue guidance 20% revenue growth:1200 staff,modest growth next year,automation increases revenue compared to staff numbers.
Fx based on constant currency.
Recent contract with Cognizent new business significant customer.Start new revenue late 17,full revenue 2018.
North America: SAAS: Revenue growth
AMEA: Perpetual Licence,Future is subscription model
Geographically diverse
R & D development precision medicine increasing spend,research in Auckland,adding machine learning to existing products to make sense of increase in data.

[Cheebz]

The result was positive yet the shareprice seems to be going down.. not understanding whats going on? is there something I am missing? Is there something other shareholders know that I cant see?

[kiora]

The result was positive yet the shareprice seems to be going down.. not understanding whats going on? is there something I am missing? Is there something other shareholders know that I cant see?

You missed the increase in share price from $2:50 to $4:60 in the last 3 months.It is NORMAL that a share price doesn't straight line upwards.The rise was in anticipation of good result and the fact that OHE was under priced relative to other SAAS companies.The market may have been anticipating higher than 26 % increase in revenue as well(on a constant currency basis sales only rose 12 per cent).Now we have to wait until 2018 to see its potential.Hopefully OHE will hold true to the fact they say they have enough funds to see them through to break even.

[Cheebz]

fair enough comment.. i am just responding as in does the market or old players receive their information from special sources (softwares? Fund managers information etc) that the general or new investors are not aware of? I picked up that this company was undervalued way back.. but just not understanding the reaction to the annual result.

[kiora]

fair enough comment.. i am just responding as in does the market or old players receive their information from special sources (softwares? Fund managers information etc) that the general or new investors are not aware of? I picked up that this company was undervalued way back.. but just not understanding the reaction to the annual result.

Market reaction likely due to buy on rumor,sell on fact

[kiora]

Market reaction likely due to buy on rumor,sell on fact

Interesting trading today.Is it a trend?Smaller share trades punters taking profits?Larger parcels going to investors looking at longer term horizons?

[gbogo]

Interesting trading today.Is it a trend?Smaller share trades punters taking profits?Larger parcels going to investors looking at longer term horizons?

local broker raises target to $5.25 from $4.75 based on yesterday's results...

[Cheebz]

local broker raises target to $5.25 from $4.75 based on yesterday's results...

Personally I think company is much more solid and capability to be a huge success based on the type industry it is in. Xero has many direct competitors providing same/similar solutions.. and its an old industry with established players. However Xeros product is great.

in my opinion Orion has a great product which has taken years to develop and it is in an industry that is ready for change. Orions product is the type that can change how hospitals operate and handle information. HOWEVER there is massive risk regarding access to data and potential to cause life threatning issues etc.

Anyway time will tell.

[gbogo]

So much for an informed market that represents all possible available information. I've noticed before how seemingly obvious market-impacting news comes out yet the NZ market takes some time to react. I'm guessing that institutions can't respond instantly - perhaps some decision-making process before committing funds? And perhaps it takes them time to digest new research on results (broker analysis, NBR stories etc). Overseas, it all seems to happen in an instant and the price moves. Here, there was plenty of time and opportunity to get involved, up to 12% below today's closing price, after the results came out. Great market to trade and meanwhile, this stock, one of our largest tech companies by mkt cap, continues to attract little attention. I look forward to it hitting the headlines when the stock is back above $6 and higher. Disc: still long.